'My flight was cancelled and we lost our hire car - now they won't refund me'

Every Monday we get an expert to answer your Money Problems. This week, a reader asks what rights they have after their flight was cancelled.

Reader Peter asked: "I paid easyJet for car hire for the duration of my holiday in June, but unfortunately they cancelled the flight out and we therefore lost our car hire as we didn't turn up at the arranged collection time. We tried several times to call the car hire desk. They will not refund me."

We asked Scott Dixon, from The Complaints Resolver, for his advice on this one.

Scott points out that you will have booked a holiday/flights with easyJet and then a car hire via its website - so your contract for the latter is unlikely to be with them.

You therefore need to check the terms and conditions to see what the car hire company says about flight delays. Scott notes that these are key terms and can't be buried in the small print.

The next step would be to lodge a formal complaint with the provider with proof - e.g. screenshots of call times and dates - showing you tried to inform them of the delay but couldn't speak to anyone.

"It is unfair and unreasonable to expect you to be left out of pocket through no fault of your own," Scott says.

If the hire firm is a member of the British Vehicle Rental Leasing Association or European Car Rental Conciliation then you will have additional rights and another avenue to seek redress.

If you paid for the car hire by credit card and it cost more than £100, you could also raise a Section 75 claim with your credit card provider to request a refund, as the card provider is jointly liable. (You can read what Section 75 is here).

Scott suggests stressing that there has been a "breach of contract" with evidence to support your claim.

You should also see what your travel insurance says.

Compensation via easyJet

You might be eligible for compensation for the flight cancellation via easyJet - but not if it was caused by something outside of their control.

"Airlines like to cite 'extraordinary circumstances' on cancellations, so question that further if necessary," says Scott.

The amount of compensation - if any - that you may receive depends on the flight distance and how much notice you were given. If the flight was cancelled less than 14 days before you were due to fly and it's easyJet's fault, you could be due a payment.

Could compensation also cover the hire car cost?

Direct consequential losses, such as car hire and hotel losses, don't fall under passenger compensation regulations, Scott says.

He adds that the exception would be if everything was booked as a package holiday.

"I would press easyJet on this and ask if they can offer either a voucher/refund for the missed car hire under the circumstances," Scott adds.

Scott advises putting everything in writing to create a paper trail and evidence to support your dispute.

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If all else fails, you could take your case to the small claims court if it was England or Wales, or follow simple procedure in Scotland or the claims process in Northern Ireland.

"Perseverance breaks resistance. Don't be fobbed off and don't give up, as airlines and other traders rely on tried and tested tactics to frustrate legitimate claims and deny you a right to redress," he says.

This feature is not intended as financial advice - the aim is to give an overview of the things you should think about. Submit your dilemma or consumer dispute via:

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  • Email news@skynews.com with the subject line "Money blog"